Zimbabwe introduces digital economy tax, transfer pricing filing requirement
New guidelines to tackle profit shifting and transfer pricing ... - Continue reading
Category: Africa
India: Bombay High Court Quashes 197 Order Rejecting Mauritius Tax Treaty Benefits
High Court sets aside section 197 order due to absence of prima facie evidence of tax avoidance Rejects factors such as lack of business activities and administrative expenses as conclusive of sham transactions Holds that a detailed inquiry can be conducted during normal assessment Directs refund of withheld tax subject… – Continue reading
Money is fleeing in panic from Russia
Last week, the Bank of Russia has published data on key indicators of the balance of payments for the first four months of the current year. One of them — the balance of financial transactions of the private sector. It was negative and amounted to 34.7 billion dollars. Translated into… – Continue reading
Government Should Investigate BAT’s Tax Evasion
Kenya Tobacco Control Alliance KETCA has today called upon the government to prioritize regulations that enable the maximization of corporate tax revenue from British American Tobacco (BAT) Company. The KETCA Chairman, Joel Gitali said that BAT avoids paying full corporate taxes which would have been used for public services like… – Continue reading
Alleged Tax Evasion: Court renews Jay Jay Okocha’s arrest warrant
A Lagos State prosecutor, Y. A. Pitan, has told an Igbosere High Court in Lagos that former Super Eagles captain, Austin Okocha, has not liquidated the alleged tax debt he owed the state. Mrs Pitan told Justice Adebayo Akintoye on Tuesday that Mr Okocha had visited the Lagos Internal Revenue… – Continue reading
Revised tax treaties usher in a new era in investment, taxation
Policy tweaks curb evasion, show India can woo investments without sops Singapore, another major FDI contributor to India, too, enjoyed the same tax sops under a similar treaty with India NEW DELHI: For about a decade-and-a-half, revenue authorities examining foreign investment proposals received by the erstwhile Foreign Investment Promotion Board… – Continue reading
Nigeria Signs Off On Common Reporting Standard With OECD
As we await official communication, information reaching us have it that Nigeria has signed off on the Common Reporting Standard (CRS) with the Organisation for Economic Co-operation and Development (OECD). As publicly stated on Wikipedia, ‘The Common Reporting Standard (CRS) is an information standard for the Automatic Exchange Of Information… – Continue reading
Three Chinese businessmen arrested over Sh58 million tax evasion
Detectives on Wednesday night arrested three Chinese nationals for evading to pay tax to Kenya Revenue Authority (KRA) amounting to Sh58 million. The three, Pi Ning, Li Hua and Hu Bin, are directors of Electric Tools Kenya Limited. The suspects, who are being held at the Railway Police Station, will… – Continue reading
FIRS Vows to Eliminate Multiple Taxation
Obinna Chima The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, has restated the agency’s commitment to eliminating multiple taxation in the country. Fowler said this at a tax breakfast seminar with the theme: “Tax Controversy and Dispute Resolution,’ organised by KPMG Nigeria in Lagos, recently. According to… – Continue reading
Tunisia, U.S. sign deal on tax compliance
TUNIS, May 13 (Xinhua) — Tunisia and the United States signed on Monday an agreement to improve international tax compliance and mutual cooperation in the field of taxation, Tunis Afrique Presse reported. The agreement was signed by Tunisian Minister of Finance Ridha Chalghoum and U.S. Ambassador to Tunisia Donald Blome… – Continue reading
48 KRA officers wanted for bribery, tax evasion
48 Kenya Revenue Authority (KRA) officials were Monday morning expected at the Directorate of Criminal Investigations (DCI) headquarters on Kiambu road for questioning. The individuals include 32 officers from KRA’s Domestic Taxes Department, 15 from the Customs and Border Control Department and one from the Investigations and Enforcement Department. They… – Continue reading
Tax substitution as double taxation
The power to levy tax in Nigeria, being a federation, is shared between the Federal, State and Local governments. To avoid double taxation, the tax system spells out which government unit (federal, state or local) has the power to levy tax on specific persons and matters. The Federal Inland Revenue… – Continue reading
Antonio accuses M’membe of engaging in tax evasion
PF deputy media director Antonio Mwanza says if former Post newspaper editor-in-chief Dr Fred M’membe was in America, he would have been in jail, by now, for tax evasion. And Mwanza says opposition political parties come short of blaming the Pope when they lose elections. Meanwhile, National Democratic Congress (NDC)… – Continue reading
Mauritius: blue skies, sunshine – and these noteworthy changes to its domestic laws
Not just the ultimate holiday stop, Mauritius is also a preferred jurisdiction for fund managers looking to establish African-focused funds, say Michael Denenga and Nicole Paige, partners at Webber Wentzel. “A scenic island off the coast of Africa, Mauritius’ main competitive advantage is its proximity to the jurisdictions that African-focused… – Continue reading
Joint tax mechanism to enhance trade & investment among BRI countries
A new mechanism aimed at creating a more favorable tax environment for enterprises and countries involved in China’s Belt and Road Initiative (BRI) has been established. Tax officials and experts from dozens of countries and international organizations have gathered in China from April 18 to 20 for the first Belt… – Continue reading
Africa’s problem with tax avoidance
Every year African countries lose at least $50 million in taxes — more than the amount of foreign development aid. So where is it all going and how can multinational companies be held to account? NGOs continue to raise the alarm. African countries are being cheated out of billions in… – Continue reading
Ethiopia arrested 105 businessmen over alleged tax evasion
About 105 businessmen are arrested over an alleged tax evasion in the capital Addis Ababa. Adanech Abebe, minister of the ministry of revenue, said over 135 businesses are identified for “plundering public resources and tax evasion,” according to a report by state affiliated FanaBC. The ministry claims the alleged tax… – Continue reading
Ginimbi $22 Million Tax Evasion Investigations Complete
Businessman Genius Kadungure was back in court yesterday for continuation of his $22 million tax evasion case. Kadungure was represented by Jonathan Samkange when he appeared before Harare regional magistrate Vongai Guuriro. Prosecutor Shephered Makonde told the court that investigations have been completed. He said a trial date will be… – Continue reading
Mauritius, first jurisdiction globally to legally protect crypto
The Mauritius International Financial Centre (IFC) claims to be the first jurisdiction globally to offer a regulatory landscape for the custody of digital assets. This is according to communication from the country’s integrated regulator for the non-bank financial services sector and global business, the Financial Services Commission (FSC). The FSC… – Continue reading
Tunisian Government Estimates Tax Evasion at USD8.3 Billion
Prime Minister’s adviser in charge of tax reform Faisal Derbal has revealed that tax evasion is estimated to reach TND25 billion (around USD8.3 billion) in Tunisia. He denied, during a press conference in the government’s headquarters, rumors circulating about the tax evasion value rising to double of the mentioned number… – Continue reading
Angola’s parliament approves elimination of double taxation with Portugal, China and UAE
The Angolan parliament unanimously approved proposals for the resolution of agreements for the elimination of double taxation and prevention of tax evasion on income tax with Portugal, China and the United Arab Emirates (UAE), according to official information. The Secretary of State for Cooperation, Domingos Vieira Lopes, said that the… – Continue reading
End of double taxation between Angola and Portugal approved in Lisbon
The Portuguese Parliament voted in favour of a proposed government resolution approving the agreement to eliminate double taxation with Angola, the Portuguese press reported on Friday. The parliament unanimously approved an agreement between Portugal and Angola on mutual administrative assistance and co-operation in fiscal matters signed in Luanda on 18… – Continue reading
Countdown to the amended South African Expatriate tax law
The announcement by National Treasury and SARS in 2017 that the tax exemption on South African expatriates is set to change, has resulted in the lifestyle of many South Africans, who are employed by companies abroad, to rapidly change from a South African tax liability point of view. By Claudia… – Continue reading
New EU rules on tax avoidance now effective
FIRST proposed by the European Commission (EU) in 2016, a set of new tax rules aimed at eliminating most common corporate tax avoidance practices came into force on 1 January 2019. The commission posted on its website on 30 December 2018 that the new tax rules known as Atad (anti-tax… – Continue reading
Gov’t targets to lower corporate tax rate
The government is targeting to increase tax compliance among Micro Small and Medium Sized Enterprises by offering them lower corporate tax. East African Affairs Cabinet Secretary Adan Mohammed says various government agencies are working closely in integrating all tax payment regimes to ease tax payment and boost compliance. Tax avoidance… – Continue reading
Worldwide: UK Tax Round Up – November 2018
General UK Tax Developments Finance Bill The Finance (No 3) Bill 2018-19 (which will become the Finance Act 2019) was published on 7 November and includes legislation to enact the changes highlighted in our UK Budget blog post ( UK Budget Blog). Another key area covered by the Finance Bill… – Continue reading
Cyprus: Entry Into Force Of The Protocol Amending The Convention On The Avoidance Of Double Taxation Between Cyprus And Mauritius
The Cyprus Tax Department has announced that the procedures for ratification of the protocol dated 23 October 2017 amending the Convention on the Avoidance of Double Taxation between Cyprus and Mauritius have been completed, and the protocol entered into force on 2 May 2018. The protocol replaces text of article… – Continue reading
Kenya and Mozambique move to remove double taxation, ease Visa rules
Foreign Affairs Cabinet Secretary Monica Juma says the move is aimed at eliminating double taxation. Juma and her Mozambique counterpart Jose Antonio Pachecho have constituted a Joint Commission of Cooperation tasked with this mandate ahead of the State Visit by Mozambique President Filipe Nyusi who will be hosted by President… – Continue reading
Trade misinvoicing costs South Africa $7.4bn in tax a year
While SARS is scrambling to meet collection targets, a new report estimates the country lost $37-billion in revenue to trade misinvoicing in five years. Trade misinvoicing is thought to be the largest component of illicit financial flows, draining developing countries of much-needed finances. In a new report, Global Financial Integrity… – Continue reading
KRA Reveals 6 Tricks Foreign Firms Use to Evade Tax
Kenya Revenue Authority (KRA) has revealed six tricks that multinational firms use to dodge paying tax. One of the schemes involves the firms exporting very cheaply and importing good very expensively. The authority reports that most firms also under-declare they pay to expatriates a move that reduces their profits and… – Continue reading
Angolan president seeking increased cooperation with Portugal
Luanda, ANGOLA, November 18 – Angolan head of state Joao Lourenco has pledged to raise bilateral cooperation with Portugal during his visit to European country scheduled for 22- 24 November this year. Joao Lourenco made the pledge during an interview with the Portuguese newspaper “Expresso”, on the eve of his… – Continue reading
Nigeria: Public Notice On The FIRS’ Income Tax (Transfer Pricing) Regulation 2018
The Federal Inland Revenue Service (FIRS) recently released the Income Tax (Transfer Pricing) Regulation 2018 (‘the Regulation’). The Regulation took effect from 12th March 2018 and replaces the Income Tax (Transfer Pricing) Regulations, 2012. The Regulation sets out the legal framework for the application of the arm’s length principle to… – Continue reading
Zambia lost $145m through tax evasion, smuggling of ethanol in 2017 – report
ZAMBIA last year lost US$145.5 million through tax evasion by unregistered and registered low-cost spirits producers and smuggling of ethanol and beverages, a report has revealed. And Vice-President Inonge Wina has backed Zambian Breweries’ Youth Mentorship Programme aimed at curbing alcohol abuse among youth and promoting positive and responsible decision-making… – Continue reading
EU to delist Namibia as a tax haven
THE European Union has decided to remove Namibia from the list of 17 countries regarded as tax havens due to lax practices and regulations on tax governance. Namibia was blacklisted in December last year, and is currently one of the six territories countries which are still blacklisted, while the other… – Continue reading
Nigeria seeks IMF’s support on tax collection
The Federal Government is seeking assistance from the International Monetary Fund (IMF) on modalities for improving tax collection, especially from the International Oil Companies (IOCs), Finance Minister Zainab Ahmed, has said. She told reporters on the sidelines of the ongoing 2018 International Monetary Fund (IMF)/World Bank Group Meetings, in Bali,… – Continue reading
Buhari Signs Executive Order 8 on Offshore Money Laundering
President Muhammadu Buhari on Monday in Abuja signed executive order eight, tagged Voluntary Offshore Assets Regularization Scheme (VOARS) to make money laundering and tax evasion difficult. Senior Special Assistant to the President on Media and Publicity, Malam Garba Shehu, in a statement last night, said Executive Order 008, which was… – Continue reading
Buhari Tightens Tax, Money Laundering Rules With New Executive Order
By the order, Nigerian taxpayers who hold offshore assets and incomes are expected to, within a period of 12 months, declare voluntary those assets and pay taxes on them. When they do this, they should expect to derive certain specified benefits. The administration of President Muhammadu Buhari has stepped up… – Continue reading
Swiss Bank starts sharing Client Data.
Switzerland has begun sharing financial record data with tax authorities in many countries as a method for battling tax evasion, however, Africa, which loses about $60 billion in unlawful flows every year, generally into European banks, is prominent by its nonappearance from the arrangement. Swiss bank accounts have for quite… – Continue reading
Angola, China put an end to double taxation on business transactions
Luanda, ANGOLA, October 6 – Angola and China are due to sign a set of agreements including an accord to put an end to double taxation in commercial transactions, as part of a visit the Angolan president Joao Lourenco is due to start to the Asian country, Angop has learnt…. – Continue reading
Introduction of VAT in Angola postponed to July 2019
The entry into force of Value Added Tax in Angola has been postponed from January 2019 to July of the same year due to delays in legislation, an official said on Wednesday in Luanda. The coordinator of the technical group for the introduction of VAT, Adilson Sequeira, was speaking on… – Continue reading
TAX MATTERS | THE TAXATION OF COMPANIES IN MACAU – WORLDWIDE OR TERRITORIAL BASIS? (CONT.)
Our previous article about the taxable basis for the taxation of companies in the Macau territory made reference to the fact that the courts in Macau, notably the Court of Second Instance (TSI) and the Tax Administration, do not seem to share the same view regarding income considered as the… – Continue reading
Angola adopts new Tax Identification Number
The new Tax Identification Number (NIF) of Angola for individuals and companies goes into effect on 1 October, said on Friday in Luanda, the head of the Registration and Collection Directorate of the General Tax Administration (AGT). The entry into operation of the new NIF, which will be the same… – Continue reading
Angola and Portugal put an end to double taxation
Angola and Portugal are due this week to sign a convention to end double taxation between the two countries, as part of a two-day visit to Angola that the Portuguese prime minister is due to start on Monday, financial newspaper Jornal de Negócios reported last Friday. The newspaper reported that… – Continue reading
Brits living in SA must declare their offshore assets
The British High Commission has advised British citizens to report and pay their tax on foreign income and assets. In a media release, the Commission said as part of the British Government’s “Requirement to Correct” legislation UK taxpayers must make sure that all their foreign income and assets, where there… – Continue reading
PACAC Explains Why FG Turned Spotlight on Multinationals
The Presidential Advisory Committee against Corruption (PACAC) has explained why it is shifting the war against corruption in the country from politically exposed persons to multinationals. According to the Executive Secretary of PACAC, Prof. Bolaji Owasanoye, Africa and indeed Nigeria losses more from Illicit Financial Flows (IFF) perpetrated by multinational… – Continue reading
A Bird’s Eye View on General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) is a regulation in European Law on data protection and privacy for all individuals within the European Union (EU). The EU General Data Protection Regulation (GDPR) superseded the UK Data Protection Act 1998 on May 25, 2018. Significant and wide-reaching in scope, the new… – Continue reading
FIRS Publishes Nigeria’s Revised Transfer Pricing Regulations
Federal Inland Revenue Service has published Nigeria’s revised Transfer Pricing Regulations (NTPR). The NTPR is effective for basis periods commencing after 12 March 2018 and incorporates BEPS outcomes and suggestions from The African Tax Administration Forum. The NTPR includes significant penalties for non-compliance (a) failure to file TP declaration =… – Continue reading
Government loses huge tax revenue
Ghana loses significant tax revenue through the deliberate manipulation of the tax system by big corporate entities and multinational companies, the Senior Minister, Mr Yaw Osafo-Maafo, has said. He described the situation as worrying and tasked the Ghana Revenue Authority (GRA) to go after those companies and prosecute them if… – Continue reading
Nigeria Concludes Double Tax Treaties With Ghana, Cameroon
The Federal Government of Nigeria (FGN) concluded the negotiation of Double Taxation Agreements (the DTAs) with the Republic of Ghana and the Republic of Cameroon on 26 July 2018 and 3 August 2018, respectively. While this is a welcomed development, it is expected that efforts will now be directed towards… – Continue reading
Nigeria-Singapore income tax treaty to take effect Jan. 1
A bilateral double taxation agreement between Nigeria and Singapore generally is to take effect Jan. 1, 2019, although in Singapore, provisions regarding income taxes other than withholding taxes are to take effect Jan. 1, 2020. The treaty, also known as a DTA, is to affect how each country’s income tax… – Continue reading
